Property Council calls for PBA rethink
The Property Council has called on the State Government to go back to the drawing board to find a meaningful solution to resolve payment issues in the building contractual chain.
Property Council Queensland Executive Director, Chris Mountford, said the Government’s proposal - to mandate Project Bank Accounts for projects over $1 million from January 2019 - will not resolve payment issues, and will only serve to increase construction costs.
“It is incredibly important that all parties involved in a construction project are paid for the work they are contracted to perform,” Mr Mountford said.
“The Government already has a range of legislated mechanisms in place to resolve payment issues, which should be better utilised and refined before the Government embraces more red-tape.”
“While the Government has not yet released a detailed proposal, it is clear that their preferred model will require significant changes to existing payment mechanisms.”
“Any move towards a project bank account model would increase compliance and administrative costs for builders, which will be felt financially by all sub-contractors and the end purchasers.”
“Project Bank Accounts would mean slower payments, without offering any real solution for when disputes occur between parties lower down the contractual chain.”
“The Property Council would like to see the Queensland Government explore the results of trials being undertaken in other states prior to rushing into any action on this front.”
“The construction and development industry would welcome the opportunity to work with the Government to determine how to sharpen existing legislative mechanisms – such as the Building and Construction Industry Payments Act and Subcontractors Charges Act - to address payment issues.”